HOWELL — The Howell board of education overcame a $2.1 million
budget deficit in part by contracting out custodial and administrative services.

Contracting out for custodial service is expected to save the
district $400,000 this fiscal year alone. The district’s custodial union offered
concessions that would have saved $242,000, but the district went with the
private vendor, according to The Detroit News.

The district also contracted out four of its administrators, a
move expected to save $135,000, according to The Detroit News. Administrators
can retire and draw pension funds in addition to a salary from the contract
company by returning to work in their previous capacities. The district will
avoid paying pension contributions for the employees and additional payroll
costs like Medicare and Social Security, according to The News.

The administrators who retire will be hired by Professional
Education Services Group and will start in January as contract employees. The
board is also looking at contracting out 38 childcare positions through PESG,
which could save the district $82,000 annually, the News reported.